SEMA eNews Vol. 19, No. 5, February 4, 2016

U.S. Senate Committee Passes Bill to Protect Trade Secrets

In an effort to protect U.S. companies against intellectual property theft, the U.S. Senate Judiciary Committee passed a bill that enables companies to protect their trade secrets in federal court. The absence of a uniform federal standard has forced companies to navigate a patchwork of different laws when bringing trade secret cases in state court.

While the U.S. Department of Justice has the power to pursue criminal penalties against companies and individuals that illegally obtain trade secrets, the Department’s backlog of cases have not provided companies with sufficient protection. The SEMA-supported “Defend Trade Secrets Act” remedies this problem, providing a uniform standard for companies looking to defend their intellectual property rights in federal court.

The bill proceeds to the Senate floor. There has been no action to date on a similar bill in the House of Representatives.